Deciding To Finance A Home

Whether you’re renting, downsizing, buying or refinancing, below are some helpful tips.

Benefits Of Owning Home

Owning a home has many financial benefits. Although homeowners are faced with additional expenses and private mortgage insurance premiums, mortgage interest and property taxes are tax deductible and can save you money in the long run. Owning a home also allows you to put value back into your home and build home equity.

With a strong financial history and proper planning, owning a home can be an affordable and worthwhile investment.

Rent or Own?

Whether you should rent or own greatly depends on your local housing market, financial standing and length of residency. Whereas rent is an out-of-pocket expense, monthly mortgage payments gradually reduce your remaining loan balance. That means with each payment, you will own more of your home, eventually having no payments at all.

As a homeowner, you can make all the decisions and know where your money goes. As you decide whether to rent or own, keep in mind that rent prices can increase without your consent, reflecting rising demand and renovation costs. Additionally, mortgage payments can be less expensive than rent payments over time, even with a fluctuation in interest rates.

First Time Home Buyers

As the housing market has evolved, so has the purchasing process for first time homebuyers. From loan consultants and online resources to community members and real estate agents, first time homebuyers must do their homework in order to make the most of their investment.

Use our site as a guide for mortgage information to simplify your first home buying experience.

Mortgage Options

Mortgage Application Process

To make sure purchasing a home is the right investment for you, M.C.R. Financial Services, Inc. will walk you through the entire mortgage application process until your closing date and help lead you to the home of your dreams.

The Team At M.C.R. Financial Services Will:

• Connect you with a local mortgage representative to discuss your short-term and long-term financial goals

• Reveal the best mortgage loan options to fit your financial needs and walk you through your customized application

• Make sure you are an informed customer who has collected the required documentation necessary to complete your application

What You’ll Need When You Apply

Having these items ready to go when you apply will make your loan process even easier.

• Pay stubs covering most recent thirty days
• W-2 statements covering the past two years
• Bank statements covering the most recent three months
• 401K, IRA, or Mutual Fund accounts showing most recent transaction summary
• Stocks or certificates of deposit (copies)
• Purchase and sales agreement (copy)
• 12 months cancelled rent checks or the name and address of your current landlord (if applicable)
• Fully executed divorce decree (if applicable)
• Deed, hazard insurance policy, and most recent tax bill if you are refinancing (copies)
• A letter explaining any known credit problems or fluctuations in income
• If you are self employed, paid by commission, or own real estate used for rental purposes you will need to produce:
  • Two years signed personal federal income tax returns including all schedules.
  • If self employed through a corporation, then last two years’ corporate returns as well as a year-to date profit and loss statement and balance sheet.
• If additional information or documentation is requested, please provide it immediately.
• Read all disclosures carefully and ask questions if you need clarifications. It is best to communicate all requests and clarifications in writing early in the loan process.
• Ensure that the income you report on your application is the same income as that which is reported on your tax documents.
• Inform your loan officer of any past credit problems.
• Review your credit report carefully to verify its accuracy.

5 Step Loan Process

Purchasing a property is most likely the biggest financial decision you will ever make. Whether this is your first purchase or you are an experienced buyer, this decision must be made carefully.

1. Loan Application: 

   Collect necessary information to obtain loan approval.

2. Processing: 

   Verify the documentation for the loan.

3. Underwriting: 

   Confirm credit and income and assign conditions to the loan.

4. Document Draw: 

   Prepare the loan documents for escrow.

5. Closing and Funding: 

   Enjoy your home!